After a few weeks in an upward trend, the Euribor seems to give a slight breather to Spanish mortgages. Even so Thousands of people are affected by such high increases in the economic index and therefore the monthly increase in home mortgages, especially those with a variable mortgage signature.
Taking stock of what has happened throughout the year and the previous year, the different financing options have had very different behaviors, as well as the future of these that is totally uncertain. However, there are certain advantages when signing one mortgage or another, and even when investing and diversifying.
Variable mortgages have increased in some cases up to 300 euros per month
For example, it is more than obvious that it has not been the year for variable income, neither for mortgages, nor for funds. A year in which practically all the international stock markets have fallen, especially those referring to Europe and the United States. Although it has been the bank financing of homes that has suffered the most.
Only during 2022, some owners with variable mortgages saw financing increased by almost 300 euros per month. Figure that, throughout 2023, it could increase to reach 390 euros. For fixed mortgages, the last 12 months have not been a party either, but they have managed to survive a little longer.
In just seven months the European Central Bank has raised interest rates up to three times
Always for mortgages already signed, since new transactions implicitly an increase as a result of the repeated increases in interest rates by the European Central Bank.
VARIABLE MORTGAGES
In just seven months, the European Central Bank has raised interest rates up to three times, and is expected to make a fourth increase in the near future. Today, the price of money is 2.5% higher than in June 2022. The direct hit of the upward trend in interest rates is the significant reduction in the number of transactions in the residential sector and, of course, also in the mortgage firm.
Variable mortgages will not be the best option for 2023, although they were not in 2022 either.
All this is going to raise the installments of variable mortgages for this new year in almost record figures, from 1,900 euros to about 4,700 per yearthat is, between 158 and almost 400 euros, as published by the real estate portal Fotocasa.
For all of this, variable mortgages will not be the best option for 2023, although it was not the best option in 2022 either. The Spanish Institute for Analysis (IEA) has defined last year as “a frankly bad year for almost all international stock markets, with significant falls in the main North American stock market indicators” in relation to variable income, extrapolated to variable mortgages that have suffered the same fate.
FIXED MORTGAGES
For its part, the IEA has also analyzed the normalization of interest rates carried out by central banks in the last year to cope with very high inflation and has led to a very rapid and intense rise in interest rates.
The The market average APR for fixed-rate mortgages stands at 3.75%.
The signing of fixed-income mortgages can be quite a risk taking into account the current APR figures. Thus, according to Inteliens, the The market average APR for fixed-rate mortgages stands at 3.75%. If we compare it with the data from last October, the rise is only six basis points, so it is a minimal increase. The uptrend continues, but there has not been a significant change with respect to the previous month as it did happen in September and October.
MIXED MORTGAGES
All in all, mixed mortgages will be a trend during 2023, or at least the best financing option for residential homes.
During 2022 mixed mortgages have exceeded 26% of the total mortgages signed
According to the Trioteca mortgage platform, mixed mortgages will be protagonists in 2023. In this way, the entity foresees for this year the consolidation of mixed mortgages, since only in 2022, mixed mortgages have exceeded 26% of the total mortgages signedwith a fixed part of 2.31% and a variable part of Euribor + 0.89%, according to the quarterly study prepared and published by the Centro de Estudios Trioteca
Fixed-rate mortgages represented 73.5% of mortgages signed in December, with a fixed interest rate of 2.43%. In the fourth quarter of 2022, 91.2% of users requested a fixed-rate mortgage.
